April 5 (Bloomberg) -- Indonesia’s benchmark stock index,
Asia’s best-performing major market this year, climbed to a
record on expectations the central bank will keep interest rates
at a record low tomorrow, helping to boost the economy.

PT Astra International, the nation’s largest auto retailer,
also surged to an all-time high. PT Bank Central Asia advanced
the most in more than two weeks, leading gains among banks. The
central bank will keep its key interest rate at 6.5 percent
tomorrow after inflation slowed to 3.43 percent in March,
according to 16 out of 17 economists in a Bloomberg News survey.

The Jakarta Composite index rose 2 percent to 2,887.25,
breaking its previous record close of 2,830.26 on Jan. 9, 2008.
The measure has climbed 15 percent this year as the central bank
raised its economic growth forecast and Standard & Poor’s
upgraded the nation’s sovereign debt ratings.

Foreign investors moved more funds to Indonesian stocks in
March, buying a net 4.9 trillion rupiah ($541 million) of shares
after selling 1.6 trillion rupiah in the first two months this
year, according to data from the Jakarta stock exchange.

Currency Gains

The rupiah has risen 3.7 percent this year, making it one
of the top three gainers among the 10 most actively traded
currencies in Asia. Bank Indonesia on March 8 raised its
economic growth estimate to 5.6 percent from 5.2 percent, while
Standard & Poor’s upgraded the nation’s sovereign debt ratings
to the highest level in 12 years.

Astra increased 4.9 percent to 46,700 rupiah, closing at a
record. Bank Central Asia, Indonesia’s largest by market value,
gained 5.5 percent to 5,750 rupiah. The stock also rose after
the company said today it plans to start operating its
motorcycle financing venture in the third quarter. PT Bank
Danamon Indonesia, controlled by Temasek Holdings Pte and
Deutsche Bank AG, increased 2.8 percent to 5,600 rupiah.

“Astra benefits from low interest rates, as about 80
percent of domestic vehicle sales are funded by financing
companies,” said Handiman Soetoeyo, an analyst at PT
FinanCorpindo Nusa, a Jakarta-based brokerage. “Banking shares
are worth collecting because interest rates are still low.”

Meanwhile, PT Bhakti Investama, an Indonesian investment
company, surged 24 percent to 1,020 rupiah, the highest level
since Jan. 8, 2008, after it said it agreed to buy a majority
stake in an offshore oil and gas block in Papua.